The industry narrative in Western Australia over the past years has ever so often covered the busted mining boom and what will come after this phase. It has led to a transition to focus on other industries such as innovation, which has created a healthy diversification in the WA economy.
However, the transition happening in the resources sector should be seen in the light of moving from an investment phase to a production phase. The sector is very much alive and kicking – smarter, leaner and more productive than ever before. And with iron ore and oil prices on a rebound in 2017, WA is reaping the substantial benefits of the past decade’s investment boom.
New data from the Department of Mines and Petroleum shows that the mineral and petroleum industry reported sales of $94.8 billion in 2016 which is an increase of four per cent from 2015. Mineral commodities accounts for $74.9 billion of the total sales value with iron ore remaining Western Australia's most valuable commodity.
The Western Australian resources sector also continues to lead the nation in exploration and investment activity, with the State attracting a record 65 per cent of Australia's total mineral exploration expenditure.
"Despite a decrease in national expenditure, WA continues to attract the majority share of mineral and petroleum investment, and exploration activity,” said Mines and Petroleum Minister Bill Johnston.
Liquefied Natural Gas (LNG) is the stand out commodity with export volumes expected to grow from 27 million tonnes a year in 2015-16 to almost 50 million tonnes a year by the end of 2017-18 as the Gorgon project ramps up its production and the Wheatstone and Prelude projects come online.
Western Australia is the world’s third largest LNG exporter behind Qatar and Malaysia.
Access the Department of State Development’s WA Economic Profile March 2017 here.
Upcoming resources events:
14-17 May: APPEA Conference & Exhibition in Perth, Australia
22-24 May: Austmine 2017 in Perth, Australia
Do you wish to find out more about Western Australia’s natural resources sector and how we can assist your company? Please contact Stuart Russell on firstname.lastname@example.org